The Financial Services Regulatory Authority of Ontario published its fall pensions update, featuring the Q3 2025 solvency report for defined benefit pension plans and compliance clarifications for buy-out annuity discharge submissions under the Ontario Pension Benefits Act and Ontario Regulation 193/18. The update also notes the retirement of Lester Wong, Chief Actuary for Pensions, at the end of 2025. The Q3 2025 Solvency Report shows the median solvency ratio rising to 124% as at September 30, 2025 from 122% as at June 30, 2025, driven primarily by equity returns of 4.6% during Q3 2025. Following a review of annuity discharge submissions, FSRA highlighted recurring issues, including how the “date of the purchase” should be determined (the date the annuity quote is accepted), the requirement to calculate the solvency ratio one day after the purchase date, ensuring prescribed member notices include required content, and ensuring annuity contracts include required provisions such as joint and survivor pension terms (unless waived) and family law division limits (no more than 50% allocated to a spouse as determined at the family law valuation date). FSRA also reminded administrators of certification expectations where discharges involve members in other jurisdictions, and clarified that incremental costs reported in the Actuarial Information Summary should be reported as an annual average, with a targeted review underway. FSRA plans to launch a Pension Services Portal data clean-up initiative, starting with an internal review and then outreach to administrators to confirm or update key plan and contact data, with some historical records potentially archived; the work is expected to roll out over the coming quarters ahead of the June 2026 filing cycle. The consultation on proposed Target Benefits Supervisory Guidance closed on October 14, 2025, with a consultation summary and next steps to follow after feedback is reviewed, and planning continues for Pension Awareness Day 2026, including an in-person Pensions Forum scheduled for February 9, 2026.
Financial Services Regulatory Authority of Ontario 2025-11-18
Financial Services Regulatory Authority of Ontario reports median defined benefit pension solvency ratio at 124% and reiterates buy-out annuity discharge requirements
The Financial Services Regulatory Authority of Ontario's fall pensions update highlights a rise in the median solvency ratio for defined benefit pension plans to 124% as of September 30, 2025, driven by Q3 equity returns. It addresses compliance issues in buy-out annuity discharge submissions and announces Chief Actuary Lester Wong's retirement at the end of 2025. FSRA plans a data clean-up initiative for its Pension Services Portal and continues planning for Pension Awareness Day 2026.